ADELAIDE - The board of South Australian family-owned Coopers Brewery Ltd has recommended shareholders reject Lion Nathan's A$352 ($384.9) million takeover bid.
The Coopers board was unanimous in its recommendation to reject the A$260 a share takeover offer and called it "opportunistic".
Lion Nathan chief executive officer Rob Murray said
the offer was really a matter for shareholders to decide.
"The fact is, Coopers shareholders still have the opportunity to fully consider our compelling offer and take steps to accept it if they wish," Mr Murray said in a statement.
"We believe this is really a matter for the shareholders to decide."
Mr Murray said the Trans-Tasman brewer would also proceed with an appeal against a decision in the South Australian Supreme Court.
On Friday, a court ruled in favour of Coopers as it attempted to remove Lion Nathan's pre-emptive rights to buy its shares under a 1995 agreement where Lion Nathan handed back a 19.9 per cent stake in the company.
The court ruling must now be put to a meeting of Coopers shareholders if the rights are to be removed.
Under the present arrangements Coopers shareholders who decide to dispose of their shares will place them in the pre-emptive regime.
"If the Coopers board prevails, and the Coopers themselves have stated publicly that they believe defending against Lion Nathan will fend off all future bidders for the company, the stock will remain illiquid with little opportunity to realise fair value for those shareholders who want or need to," Mr Murray said.
- AAP
